Recently, the Bank of Thailand has announced a repo cut of 1% to stabilize the Thai economy. The move has shocked many experts as they consider it as a drastic measure, but most experts also agreed that this move would help stabilize the economy in the long run.
Currently, most economists believe that Thailand’s economy will recover from the global coronavirus pandemic by summer end, and despites the current situation, real estate investments might be a good opportunity in the Thai market.
A rising market since years but demand is weakening
Recent years have been boon for Thailand’s real estate market. Thailand continues to move towards the real estate sector, which focuses on amenities, and lifestyle to fit the global milieu. In 2017, the global real estate consultancy reported that property rates in Thailand rose by 6% to US$ 4440 per square meter. However, during the same year, over 60,000 new condominiums hit the market to weaken the overall demand.
The trend has continued ever since. Despite strong demand in the global market, the local market in Thailand laden with debt-ridden consumers experiences a sluggish demand.
On the other hand, the real estate companies in Thailand have moved close to the best infrastructure facilities like transport, and international schools to appeal to global consumers.
Is it a good time to Invest in Thailand?
Thailand has long been known to be an attractive real estate market. The country’s status as a global medical and travel tourism destination makes it an attractive opportunity for all investors.
In regards to the pandemic situation, the country has witnessed a few cases of infections, unlike many other nations. Moreover, the global clout around coronavirus pandemic has helped open new opportunities in Thailand. For example, many seasonal Chinese lodge owners have left Thailand to head home. This has created a vacuum in key real estate markets like the cities of Phuket to create more opportunities for new investors.
On the other hand, Thailand has also witnessed a move away from travel-based tourism in recent years. The country has long depended on revenues from the tourism industry to drive the economy.
However, in recent years, the government has encouraged real estate investments, and construction of lifestyle apartments to encourage old-age retirement facilities, and expatriates to move to the country. This has led to a surge in house pricing and investments accordingly.
However, despite the burgeoning rate of growth in the real estate market, Thailand has managed to secure high growth with low-rates. According to Investopedia, expatriates can lead a comfortable life in Thailand with a US$ 1000 income per month. This can be a boon for expatriates working for multinationals in the country. Cities like Bangkok are home to major districts, which are now home to global expatriates. And, thanks to the on-going pandemic,
Thai real estate investment will likely remain a promising opportunity until the summer end and prices remain quite low compared to Singapore or Hong Kong for instance.
What to Do to Buy a Property in Thailand?
Thailand, like many developing countries, poses a major promise and a slew of challenges for international investors. As with many legal systems, foreigners are not allowed to own land in Thailand.
However, there are many legal ways to run a successful business in Thailand, to own a property for your investment goal or just as a second home in the region, and real estate agencies like Samui Exclusive, help you to have all the keys to buy a property in Koh Samui , with an all-inclusive service, from the market research to the property management.
For example, depending on the titles, and location of lands, some titles can be leased to foreigners on a temporary basis. Additionally, a person of foreign origin can also lease land for a long duration, or up to 30 years. Moreover, owners of Thai limited companies can also acquire lands through the company.
Due to legal limitations of owning the land, foreigners commonly engaging in leasing the land for long-term or acquiring land through marriage, and family in Thailand.
Key takeaways
Many global travelers and employees of multinational companies call Thailand home, thanks to its hospitable culture, and world-class schools, and medical facilities. Thailand continues to drive strong economic growth along with hot properties at reasonable rates. In this aspect, Thailand continues to hold many promising surprises for international investors.